Bank of New York Mellon Corp. plans to cut its global work force by roughly 3%, a move that comes as some of the world's largest financial firms continue to struggle.
The asset manager and securities adviser said the cuts will affect roughly 1,500 positions. The company said it hopes to lessen the impact on its current staff of 48,900 workers by enacting an immediate hiring freeze across most of the company and trimming the use of temporary workers.
"Over recent quarters, BNY Mellon has succeeded in building positive revenue momentum. However, expenses have been growing unsustainably faster," said Chief Executive Robert P. Kelly.
As macroeconomic worries accelerate around the world, expectations have dimmed for many players in the financial sector, particularly in the face of slow revenue growth and historically low interest rates. HSBC Holdings PLC recently said it could cut around 30,000 jobs around the world over the next two years, while firms like Goldman Sachs Group Inc. are expected to make deeper staff cuts than typically seen.
Last month, Bank of New York Mellon reported its second-quarter earnings improved 12%, helped by an 18% increase in fee revenue. Still, expense growth remained high and Kelly at that time signaled that the company would take additional actions to reduce expenses.
Shares were off 4.8% at $20.09 in early trading. Through the Tuesday's close, the stock is down 30% since the start of the year.
Mia Lamar is a reporter for Dow Jones Newswires, where this story originally appeared. Write to her at firstname.lastname@example.org